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<p>Pensions tax relief is one of the most expensive reliefs in the personal tax system.
In 2017/18 income tax and employer National Insurance Contributions relief cost over
£50 billion, with around two-thirds going to higher and additional rate taxpayers.
As confirmed at Autumn Budget 2017, from April 2018 the lifetime allowance will increase
in line with CPI, in order that the value of this benefit is able to keep pace with
inflation. This means from April 2019 the lifetime allowance has risen to £1,055,000.</p><p>
</p><p>The same tax rules must apply identically to everyone in the same situation,
regardless of their employer.</p><p> </p><p>However, across all public service workforces
the Government looks at remuneration in the round and takes action when required to
ensure delivery of world class public services. Where there is evidence that the delivery
of services is being impacted, the Government takes appropriate action to address
this, in line with our principles for pay and pensions policy. This is why we have
introduced a temporary, taxable, Recruitment and Retention allowance for a small section
of the judiciary, and will shortly bring forward a consultation on a new 50:50 pensions
flexibility for senior clinicians in the NHS pension scheme.</p><p> </p><p>All aspects
of the tax system are kept under review and are subject to change through the annual
Budget, in the context of the wider public finances. Any future changes to the tax
system will be announced through this process.</p><p> </p>
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